A low credit score can prevent you from getting a car loan, mortgage and other important things. If your credit score could use some improvement, it is important that you make a point of seeing how you can raise it quickly. The more information you have, the better your chances will be of improving your credit sooner rather than later.
Make Sure your Credit Report is AccurateThe first thing that you will need to do when trying to improve your credit score is to get a copy of your report so you can look through it to make sure there is no inaccurate information. Sometimes people have inaccurate information on their credit reports that is negatively affecting their score, so you will need to make sure this isn’t the case. By taking the time to do this you will be potentially be able to improve your credit score with very little effort.
Pay off your Credit Card BalancesOne of the very best ways to go about increasing your credit score is to pay off any outstanding balances of credit cards you have. If you have a small $20 balance on one card and a $50 balance on the other, you will need to pay them off as soon as possible. Although your balances might be low, paying them off can do a lot of good for your credit overall. Most people don’t realize just how much their outstanding credit card balances are preventing their credit score from recovering.
Pay all of your Bills on TimeWhen you are trying to increase your credit score, you will definitely need to make a point of paying all of your bills on time. Whether it is your utility bills, car payments, mortgage or anything else, you will need to make your payment on time every time. Late bill payments can reflect poorly on your credit score, so you will therefore need to make sure that you make them on time to avoid any issues. This is a simple yet effective way to not only prevent your credit score from going lower, but to increase it as well.
Raise your Credit LimitsWhile it’s true that raising your credit limits can be a good way to increase your credit score, this is not a good method to use if you have a problem with controlling your spending. Those who don’t have a problem with overspending might want to think about raising their credit limit on one or more of their cards to get the utilization ratio lower. To do this you simply have to call your credit card company and request that your credit limit be increased.
Pay off your Loan on TimeIf you have taken out of a payday loan or some other type of loan, it is imperative that you pay it off on time. While paying off your loan early might not do anything positive for your credit, making sure it gets paid off on time will. It’s also important to keep in mind that if you are paying off a loan in installments, late payments will reflect poorly on your credit. It is crucial that you pay your loan off within the agreed upon time frame so that you can start to improve your credit score in a noticeable way.
Determine What Exactly you Need to ImproveIt’s also going to be important that you take the time to determine exactly what about your credit you need to improve. If you are fairly new to credit and don’t have much history at all, you will need to spend some time building it up. If you have a lot of active debt listed on your credit report, you will need to start paying it off as soon as possible. When you take the time to pinpoint exactly what you need to improve, it will be a lot easier to start actually doing it.
Fix Your Late PaymentsWhen you are trying to fix your poor credit, you will definitely need to organize yourself and start correcting all of your late payments. Late payments on loans and other things can have a tremendously negative effect on your credit, so you will therefore need to make sure that you correct them. You should ask your credit card issuer if they will be willing to forgive your late payment. Most credit card companies are fairly forgiving, so you will need to ask them if they can forgive your last late payment. One of the best things you can do to avoid having your credit score worsen is to avoid late payments altogether.
Clear up Collection AccountsIn order to improve your credit score in a meaningful way, it will be necessary to contact the debt collector that is listed on your credit report. Ask the debt collector if they would be willing to stop reporting your debt to credit bureaus if you make full payment to them. While this might technically violate their agreement with credit bureaus, it’s still worth a try. This could be an extremely effective way to begin improving your credit, so you will definitely want to give it a shot.
Apply for a Credit CardWhile you might be hesitant to apply for a credit card if you have poor credit, getting one can actually do wonders for your credit score. You will of course need to make a point of making payments on your card on time every single time, because otherwise your score will fall even farther. If you think you will be able to control your spending and make payments on time each month, this is definitely something that you will need to look into.
There are lots of different ways that you can go about improving your credit score, and the more methods you use the better your chances will be of accomplishing this. No matter how bad your credit is, you can begin taking steps to improve it today.